1 Managerial Accounting Just Add Water . and Paddle: Current Designs Managerial Accounting Basics Comparing Managerial and Financial Accounting Management Functions Organizational Structure Managerial Cost Concepts Manufacturing Costs Product Versus Period Costs Illustration of Cost Concepts Manufacturing Costs in Financial Statements Balance Sheet Income Statement Cost of Goods Manufactured Cost of Goods Manufactured Schedule Managerial Accounting Trends Service Industries Focus on the Value Chain Balanced Scorecard Business Ethics Corporate Social Responsibility The Value of Data Analytics Data Analytics Insight: Using Data in Its Own World Data Analytics in Action 2 Job Order Costing Profiting from the Silver Screen: Disney Cost Accounting Systems Process Cost System Job Order Cost System Data Analytics Insight: Providing Service Through the Cloud Job Order Cost Flow Accumulating Manufacturing Costs Assigning Manufacturing Costs Raw Materials Costs Factory Labor Costs Predetermined Overhead Rates Entries for Jobs Completed and Sold Assigning Costs to Finished Goods Assigning Costs to Cost of Goods Sold Summary of Job Order Cost Flows Job Order Costing for Service Companies Advantages and Disadvantages of Job Order Costing Applied Manufacturing Overhead Under- or Overapplied Manufacturing Overhead Data Analytics in Action 3 Process Costing Famed Soft Drink in the Outback: Back o'' Bourke Cordials Overview of Process Cost Systems Uses of Process Cost Systems Process Costing for Service Companies Similarities and Differences Between Job Order Cost and Process Cost Systems Recording Costs Process Cost Flow Assigning Manufacturing Costs--Journal Entries Equivalent Units Weighted-Average Method Refinements on the Weighted-Average Method The Production Cost Report Compute the Physical Unit Flow (Step 1) Compute the Equivalent Units of Production (Step 2) Compute Unit Production Costs (Step 3) Prepare a Cost Reconciliation Schedule (Step 4) Preparing the Production Cost Report Costing Systems--Final Comments Appendix 3A: FIFO Method for Equivalent Units Equivalent Units Under FIFO Comprehensive Example FIFO and Weighted-Average 4 Activity-Based Costing Wellness for Customers and the Company: Technogym SpA Traditional vs. Activity-Based Costing Traditional Costing Systems Illustration of a Traditional Costing System The Need for a New Approach Activity-Based Costing ABC and Manufacturers Identify and Classify Activities and Allocate Overhead to Cost Pools (Step 1) Identify Cost Drivers (Step 2) Compute Activity-Based Overhead Rates (Step 3) Assign Overhead Costs to Products (Step 4) Comparing Unit Costs ABC Benefits and Limitations The Advantage of Multiple Cost Pools The Advantage of Enhanced Cost Control The Advantage of Better Management Decisions Some Limitations and Knowing When to Use ABC Data Analytics Insight: Delivering People and Packages ABC and Service Industries Traditional Costing Example Activity-Based Costing Example Appendix 4A: Just-in-Time Processing Objective of JIT Processing Elements of JIT Processing Benefits of JIT Processing 5 Cost-Volume-Profit Don''t Worry--Just Get Big: Amazon.com Cost Behavior Analysis Variable Costs Fixed Costs Relevant Range Mixed Costs Mixed Costs Analysis High-Low Method Importance of Identifying Variable and Fixed Costs CVP Analysis Basic Components CVP Income Statement Break-Even Analysis Mathematical Equation Contribution Margin Techniques Graphic Presentation Target Net Income and Margin of Safety Target Net Income Margin of Safety CVP and Data Analytics Appendix 5A: Regression Analysis Data Analytics in Action 6 Cost-Volume-Profit Analysis: Additional Issues The Secret to Supermarket Profitability: Aldi Basic CVP Concepts Basic Concepts CVP and Changes in the Business Environment Sales Mix and Break-Even Sales Break-Even Sales in Units Data Analytics Insight: Taking No Chances with Its Profits Break-Even Sales in Euros Sales Mix with Limited Resources Operating Leverage and Profitability Effect on Contribution Margin Ratio Effect on Break-Even Point Effect on Margin of Safety Ratio Operating Leverage Appendix 6A: Absorption Costing versus Variable Costing Example Comparing Absorption Costing with Variable Costing Net Income Effects Decision-Making Concerns Potential Advantages of Variable Costing Data Analytics in Action 7 Incremental Analysis Keeping It Clean: Method Products Decision-Making and Incremental Analysis Incremental Analysis Approach How Incremental Analysis Works Qualitative Factors Relationship of Incremental Analysis and Activity-Based Costing Types of Incremental Analysis Special Orders Make or Buy Opportunity Cost Sell or Process Further Single-Product Case Multiple-Product Case Repair, Retain, or Replace Equipment Eliminate Unprofitable Segment or Product 8 Pricing They''ve Got Your Size--and Color: Zappos.com Target Costing Establishing a Target Cost Cost-Plus and Variable-Cost Pricing Cost-Plus Pricing Limitations of Cost-Plus Pricing Variable-Cost Pricing Time-and-Material Pricing Transfer Prices Negotiated Transfer Prices Cost-Based Transfer Prices Market-Based Transfer Prices Effect of Outsourcing on Transfer Pricing Transfers Between Divisions in Different Countries Data Analytics Insight: Setting the Optimal Price Appendix 8A: Absorption-Cost and Variable-Cost Pricing Absorption-Cost Pricing Variable-Cost Pricing Appendix 8B: Transfers Between Divisions in Different Countries Data Analytics in Action 9 Budgetary Planning What''s in Your Cupcake?: Erin McKenna''s Bakery NYC Effective Budgeting and the Master Budget Budgeting and Accounting The Benefits of Budgeting Essentials of Effective Budgeting The Master Budget Sales, Production, and Direct Materials Budgets Sales Budget Production Budget Direct Materials Budget Direct Labor, Manufacturing Overhead, and S&A Expense Budgets Direct Labor Budget Manufacturing Overhead Budget Selling and Administrative Expense Budget Budgeted Income Statement Data Analytics Insight: That''s Some Tasty Data! Cash Budget and Budgeted Balance Sheet Cash Budget Budgeted Balance Sheet Budgeting in Nonmanufacturing Companies Merchandisers Service Companies Not-for-Profit Organizations Data Analytics in Action 10 Budgetary Control and Responsibility Accounting Pumpkin Madeleines and a Movie: The Roxy Hotel Tribeca Budgetary Control and Static Budget Reports Budgetary Control Static Budget Reports Flexible Budget Reports Why Flexible Budgets? Developing the Flexible Budget Flexible Budget--A Case Study Flexible Budget Reports Data Analytics Insight: These Forecasts Move with the Times! Responsibility Accounting and Responsibility Centers Controllable Versus Noncontrollable Revenues and Costs Principles of Performance Evaluation Data Analytics Insight: Hitting the Road with Zero-Based Budgeting Responsibility Reporting System Types of Responsibility Centers Investment Centers Return on Investment (ROI) Responsibility Report Alternative Measures of ROI Inputs Improving ROI Appendix 10A: ROI Versus Residual Income Residual Income Compared to ROI Residual Income Weakness Data Analytics in Action 11 Standard Costs and Balanced Scorecard 80,000 Different Caffeinated Combinations: Starbucks Standard Costs Distinguishing Between Standards and Budgets Setting Standard Costs Direct Materials Variances Analyzing and Reporting Variances Calculating Direct Materials Variances Direct Labor and Manufacturing Overhead Variances Direct Labor Variances Data Analytics I.